PURCHASING MANAGEMENT

Purchasing Management lesson on Qatar Airways

Purchasing Management lesson on Qatar Airways

The Purchase Management's objective is to obtain raw materials, products, finished or semi-finished products, or services necessary for the company as part of its operations and at the lowest cost. Thus, the purchase becomes a strategic function within the company. However, what are the steps that the process of purchasing management in the company? Conditioning the profitability in the company, the function of procurement management in the company of an administrative nature, which is why most companies have chosen the decentralization of services supply. Here are a few lines the steps to follow in the traditional process of purchasing management. At first, we must know the market in which products, goods or services will be sold. The company must conduct a census of the best providers in consultation with the vendor roster, a comparison of their products, their services, their prices and their delivery times. Then the company must define its needs in the long and medium term, i.e. the order quantities, dates of ordering. Third, in the context of Purchasing Management, the company must "lead supply" that is to say, it must negotiate its purchase terms with suppliers nationally or internationally. In a fourth time, having identified the supplier must select and retain on the basis of value for money and maintain business relationships, the best providers before beginning any negotiations. After selection comes the phase of negotiation with suppliers in order to establish lasting relationships and favorable for the company. Of course, after negotiating, we must place the order. The sixth step is to sign the contract binding the company to its suppliers, contract specifying the conditions of purchase, regular orders and deliveries. Finally comes the last phase of the process of purchasing management in the enterprise: it is the control, monitoring, and receiving orders. The Purchasing Management in the Enterprise is to select the best products to take advantage of competition between different suppliers and of course to ensure the conditions of sale more profitable in the continuing effort to customer satisfaction and a maximum gain. For these reasons, the Purchasing Management is a critical activity in the activity of a company, and it is very important to know all the tricks to not make a blunder and have a perfect management. Our objective of this report is to understand the purchase management in Qatar Airways and compare and contrast the purchase management theories with that of Qatar airway's practices.

Literature

The purchasing and procurement strategies should be based on the assessment of requirements and market conditions.  Depend on the cost levels of buyers and sourcing risks involved. It is also necessary to consider issues such as the amount and kind of suppliers to use, the type of relationship to have with them and sign contracts, as well as the management of each contract and each Strategic Partner (Simchi, 2007, 211-232). 

Companies of any sector of the economy are constantly experimenting the effect of new competitors, a ...